Binance and Former CEO Face Lawsuit Over Hamas Attack
Major cryptocurrency exchange Binance and its former CEO, Changpeng Zhao, are facing a lawsuit filed by victims of the Oct. 7 Hamas attack on Israel. The suit alleges that Binance processed transactions for Hamas in violation of the U.S. anti-terrorism act, with plaintiffs seeking damages for providing support to terrorist organizations.
Accusations Against Binance
The complaint claims that Binance facilitated clandestine financial transactions for Hamas, bypassing U.S. regulatory scrutiny. This comes after Binance settled with the U.S. Department of Justice for anti-money laundering violations, including a $4.3 billion fine and comprehensive monitoring by U.S. authorities. In response to the attack, Binance froze Hamas-linked accounts at the request of Israeli law enforcement.
Involvement of Iran and Syria
The lawsuit also implicates Iran and Syria’s governments. Iran, considered a “leading global sponsor” of Hamas, is accused of providing extensive financial and military aid to the group. Syria faces allegations of supplying Captagon, a drug enhancing aggressiveness, used by terrorists in the attack.
Lawsuit Spearheaded by Victims
American hostage Judith Raanan and relatives of IDF soldier Itay Glisko and Dr. Daniel Levi Ludmir are leading the lawsuit. They argue that Binance’s facilitation of transactions for Hamas contributed to the violence.
Binance’s Legal Troubles
Binance has faced legal consequences before, including a guilty plea for violating sanctions and anti-money laundering laws resulting in a $1.8 billion fine. The plaintiffs’ representative expressed confidence in securing substantial damages under U.S. law.
Examining Crypto Misuse in Terrorism
An Elliptic report challenges the narrative of widespread crypto-financed terrorism, stating that Hamas’ crypto donations totaled only $21,000 in October 2023. This highlights the importance of precise data in understanding cryptocurrencies’ role in conflicts.
Concerns from U.S. Lawmakers
U.S. lawmakers, including Senator Cynthia Lummis and Representative French Hill, have raised concerns about Binance’s alleged Hamas links. They have called for stricter crypto regulations to prevent misuse and terrorism financing.
Hot Take: Lawsuit Exposes Binance’s Alleged Involvement with Hamas
A lawsuit filed against Binance and its former CEO reveals serious allegations of processing transactions for Hamas, a terrorist organization. The plaintiffs argue that Binance’s actions contributed to the Oct. 7 attack on Israel. This legal battle comes after Binance settled with the U.S. Department of Justice for anti-money laundering violations. The case also implicates Iran and Syria’s governments in providing support to Hamas. While an Elliptic report challenges the scale of crypto-financed terrorism, the lawsuit underscores the need for accurate data in understanding cryptocurrencies’ role in conflicts. U.S. lawmakers are expressing concerns and calling for stricter regulations to prevent such misuse in the future.
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